TaxTMI 
TaxTMI 
2013 (6) TMI 808
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....362/13/CSTB-CI, dated 21-2-2013 in the case of Standard Chartered Bank & Ors. v. Commissioner of Service Tax, Mumbai reported in 2013-TIOL-558-CESTAT-MUM. Accordingly, the Misc. application is also dismissed as not maintainable. 2. The appellant, M/s. George Maintenance Services Pvt. Ltd. (GMS in short), Mumbai are engaged in rendering services of "Manpower Recruitment or Supply Agency Service" and "Business Auxiliary Service" and are registered with the Service Tax Department. Based on intelligence, the department conducted investigation into the activities of the appellant and found that since 2003, the appellant had been rendering the service of "Data Confirmation and Information Dissemination" (DCID in short) for M/s. ICICI Bank and they had been receiving consideration from the said bank for rendering of the services. However, they had not discharged Service Tax liability on the said activity and misdeclared the consideration received in the ST-3 returns filed with the department. For the period 2007-08, the appellant had not filed the returns at all. Investigation conducted revealed that during the period 1-4-2004 to 31-3-2007, they had declared in the Service Tax ret....
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....ded the services to ICICI Bank, the same is not liable to Service Tax under the category of "Business Auxiliary Services". (4) Neither the show cause notice nor the impugned order specify the clause of Business Auxiliary Service under which they are liable to pay Service Tax and therefore, the matter should be remanded back to the adjudicating authority for consideration afresh by first putting the appellant to notice about the precise clause of Business Auxiliary Service under which the liability has arisen. (5) Reliance is placed on the decision of the Tribunal in the case of United Telecom Ltd. [2011 (22) S.T.R. 571] wherein it has been held that unless the notice specifies the precise ground/provision of the law on which tax is proposed to be demanded, the demand would be unsustainable in law. In view of the above, the ld. Counsel prays for grant of stay and remanding the matter back to the adjudicating authority for fresh consideration. 4. The ld. Commissioner (AR) appearing for the Revenue, on the other hand, strongly opposes the plea made by the appellant. He submits that in spite of sufficient opportunity given to the appellant at the adjudicati....
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....tial customer. 5.1.1 As per Clause 7 of the said agreement, the appellant was required to deploy and engage suitable personnel as may be required for the performance of the services. The personnel so engaged shall work under the supervision, control and direction of the appellant and the appellant shall be solely responsible for their salaries/wages/statutory payments, etc. The service provider was responsible for compliance with all the laws with regard to engagement of the personnel and confidentiality of the information collected. The appellant as service provider was also responsible for insurance against dishonesty, theft, extortion, robbery, forgery, fraud, etc., on the part of the service provider employees, agents/sub-contractors or representatives. The agreement was on a principal to principal basis. 5.1.2 As per Clause 4 of the agreement read with Schedule B, the Bank will provide the appellant a monthly consideration of Rs. 50,000/- plus payout per data confirmation as applicable at the time for services rendered by them. The said clause also provided that the appellant as service provider shall be solely liable for the payment of all central, state and l....
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....t of goods or services, which are inputs for the client; or Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client; (v) production or processing of goods for, or on behalf of the client; or (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to "manufacture" of excisable goods. Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this clause, - (a) "commission agent" means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any pers....
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.... the appellant's reply dated 9-11-2009 to the show cause notice refers. Thus, it was not as if the appellant did not know under what taxable service they were required to discharge the Service Tax liability. Thus the entire argument of non-disclosure of grounds in the show cause notice made by the appellants bereft of any logic and is a complete misrepresentation of facts and we hold accordingly. 5.2.5 Now let us see whether the ratio of the decision in United Telecoms Ltd. case is applicable to the facts of the present case. The appellant therein provided service of collection of electricity and telephone bills and issuance of birth/death certificates under e-seva project of the Government. Show cause notice was issued proposing to classify the activity rendered under Business Auxiliary Service (BAS) and Business Support Service (BSS) and the duty demand was also confirmed under both the services. In other words, the same activities were classified under two services BAS and BSS. It was in that context, it was held that in the absence of proposal in the show cause notice as to the liability of the assessee under the precise provision in the Act, the demand was unsustainabl....